- Global corporate deals valued at $10 billion or more reached 22 in Q1 2026, breaking the all-time quarterly record per LSEG data
- Total deal value jumped 29% year-over-year in Q1 even as the Iran war and oil above $100 per barrel weighed on sentiment
- Landmark deals include Unilever’s $65B+ merger with McCormick, Sysco’s $29B acquisition of Jetro Restaurant Depot, and Amazon’s $50B OpenAI investment
- Smaller deals are lagging on valuation disagreements, but bankers predict a floodgate opening if markets stabilize
What Happened?
Despite a brutal quarter for stocks — with the Nasdaq down more than 7% — and oil prices surging above $100 due to the Iran war, global M&A in Q1 2026 set an all-time record for mega-deals. Twenty-two transactions valued at $10 billion or more were announced globally, surpassing the previous record of 21 set in Q4 2015, per LSEG data. This week alone, Unilever unveiled a more than $65 billion deal to combine its food business with McCormick, and Sysco agreed to acquire Jetro Restaurant Depot for over $29 billion. Eli Lilly also announced a $7.8 billion deal for Centessa Pharmaceuticals, and Biogen struck a $5.6 billion deal for Apellis Pharmaceuticals — underscoring how activity has shifted toward healthcare and financial services as software dealmaking stalls.
Why It Matters?
The record pace signals that corporate boardrooms are looking through near-term volatility. The Trump administration’s lighter antitrust touch — with top DOJ official Gail Slater departing in February — has emboldened companies to pursue larger combinations. AI-driven mega-investments like Amazon’s $50 billion stake in OpenAI are also powering a significant chunk of deal activity. Total deal value rose 29% year-over-year in Q1 even as deal count fell 17%, confirming capital is concentrating in fewer, larger bets.
What’s Next?
Potential blockbusters in the pipeline include Estee Lauder’s talks to acquire Puig Brands, Pernod Ricard and Brown-Forman merger discussions, and Tilman Fertitta’s bid for Caesars Entertainment. Bankers predict a floodgate opening if the Iran war resolves and oil prices ease. Said Sullivan and Cromwell M&A partner Frank Aquila: “If we get a bit of stability, the floodgates could open to a phenomenal M&A year.”
Source: The Wall Street Journal
